Personalization, Omnichannel Strategies Drive 2020 Direct Mail

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AccuList’s direct mail marketing and mailing list clients embrace a channel that, despite perennial death notices, continues to outperform in terms of response, but mailers must also rely on evolving strategies for success in 2020.

2020 Success Depends on Data-Driven Personalization

Research consistently shows that personalization bumps up response. Most recently, in a 2019 NAPCO Research report on direct mail personalization, 44% of respondents saw personalized print marketing campaigns increase response by 16% on average, while Canon Solutions research found that adding a person’s name and other personalized database information (along with using full color) can increase the response rate of direct mail campaigns by up to 500%! So it’s no wonder that the recent Printing Impressions article by senior editor Toni McQuilken cites a number of leading marketing and print industry leaders stressing that data-driven personalization is the route to 2020 direct mail success. For example, Maureen Powers, president, Direct Marketing Group at RR Donnelley, asserts, “Personalization is more important than ever before, including with direct mail…We are using the direct mail channel to drive the customer experience through communications such as coupons and personalized offers. We’re also changing how we help our clients message their clients based on individual customer preferences and their point in the customer journey.” Likewise, Jim Andersen, executive chairman of IWCO Direct, stresses the shift toward variable data printing of smaller runs of targeted, personalized direct mail with digital tie-ins: “Today’s direct mail is more effective, relevant, and timely thanks to more sophisticated audience selection and segmentation. This technology uses digital print to personalize every component of a mail piece, including letters, inserts, cards, and call-to-action reply devices that connect the physical mail to an online, digital marketing experience.” 

Customer-Demanded Omnichannel Campaigns Mate Mail With Digital

For Andersen, mail personalization must be part of the omnichannel approach that customers demand today: “One of the biggest opportunities in the direct mail space is providing effective and efficient solutions to consumer demand for personalized, relevant messaging integrated across all channels. Insightful use of data, combined with the flexibility of digital print production, allows marketers to seamlessly integrate tactile marketing in their omnichannel campaigns.” Summer Gould, of Target Marketing magazine, has cited three already-proven ways to combine mail and digital:  1) online display ads that match direct mail data files to an IP address to target specific people by displaying cookie-free banner ads on web pages; 2) Facebook ads that match direct mail data with Facebook data to send targeted ads (see our Facebook Match services); and 3) e-mail matched with direct mail audience targeting to keep offers fresh, deliver response reminders and make added special offers (see our Digital2Direct services). The mail-digital mating can be taken even further to a union of programmatic automation with mail. Printing Impressions cites the example of Brodnax 21C Printers in Dallas, where Jim Singer, managing partner, describes their innovative program: “We take raw XML data to drive intricate, complex direct mail campaigns, including ongoing on-demand digital printing campaigns for local store marketing applications. Every night at midnight we get a massive amount of data, and the automated workflow we built for this programmatic offering” kicks in to generate direct mail campaigns and send them to production.

Data Quality Has Never Been More Paramount

These trends to more personalization and omnichannel integration rely on marketing data for segmentation and targeting, of course. Plus marketers must adjust for growing regulation of data security and privacy. All make data quality a top direct marketing priority in 2020. Yet too many marketers feel overwhelmed by the torrent of omnichannel “big data.” A Forrester Consulting 2019 survey revealed that, while 82% of companies place a high priority on refining data quality, more than a quarter of all marketing campaigns were hurt by substandard data in the last 12 months. Clicktale 2019 surveys of marketing and customer-experience professionals found almost a third of marketers don’t feel they’re effective at utilizing their web and mobile data, over half (54%) said they “don’t believe they have a strong understanding of their customers’ behavior across digital channels,” and 20% reported feeling like “they will never truly understand why their customers buy.” Check out this 10-step data-quality strategy from VisionEdge Marketing if you are looking for a place to start.

 

 

 

 

 

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Personalization and Privacy Trends Highlight Need for Data Strategy

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As data brokers, the AccuList team keeps a close eye on the many issues affecting the data strategies of our direct marketing clients. Data privacy is going to be one of those issues. While many of our U.S. clients are not affected directly by the European Union’s General Data Protection Act (GDPR), U.S.-based consumer-data privacy efforts have now resulted in the California Consumer Privacy Act (CCPA), with other states likely following that model and federal legislation on the horizon. Regulation is only one of the data complications facing marketers now that omnichannel data personalization has become essential for targeted response and ROI. So what strategies will help prepare for data market changes in 2020?

Data Privacy Demands Customer Focus Across Silos and Sources

Companies face complicated decisions when combining first-party data collection, user-level data from the big digital platforms (Google, Facebook and Amazon) as well as second- and third-party data in ways that balance consumer privacy with smart (and customer-demanded) personalization. A post in AdExchanger by Briggs Davidson, a senior manager at Deloitte Consulting, outlined some key steps for coping with a marketing data landscape that now includes regulation like CCPA. He advises starting with a focus on the customer in collecting, organizing, storing, and activating data across all silos that may need to meet data-privacy compliance, such as marketing and IT. Then when it comes to first-party data, prepare to shift marketing strategies to ensure consumers have a reason to share their data, delivering value to build trust. Davidson predicts creation of data clean rooms, or a separate analysis space for combining first-party data with platform-level customer data under strict privacy controls before usage. Marketers also will need an even closer embrace of media analytics to support a unified customer view, and use of new tools, such as Google’s Ads Data Hub. Finally, marketers will need multidisciplinary teams—for example Google’s upcoming restrictions on DoubleClick ID will boost the need for tech pros for unified customer views within Google—as well as partner collaboration in collecting and storing customer data.

Personalization Power Is Driving Marketing Data Trends in 2020

Hyper-personalizaton is expected to drive data marketing in 2020, according to a useful infographic put together by European digital platform firm Qualifio, which found that 83% of marketers say creating personalized content is one of their biggest challenges. Why? Because personalization now requires: 1) new tools to collect and analyze first-party data for compliance with data privacy regulations like GDPR and CCPA; 2) an omnichannel purchasing journey and analytics for a single customer view; 3) incorporation of new technologies such as voice search (50% of Google searches are expected to be voice searches in 2020); and 4) meeting rising customer standards for personalized promotion and service. In fact, 70% of the customers surveyed want an immediate response to their questions or complaints, which is fueling artificial intelligence  (AI) and machine learning (ML) initiatives. Marketers surveyed are already moving to meet personalization challenges, with 78% of European companies completing a GDPR compliance assessment and 65% using omnichannel efforts to personalize customer journeys, per Qualifio’s data. For those U.S. marketers still hesitating to commit to personalization, check out these statistics on improved response, ROI and brand loyalty for e-mail, mobile, e-commerce and digital ads. Direct mail personalization, from name-only to variable images and text, has a proven track record of success, too; in fact, a 2019 survey by NAPCO Research found 44% of responding marketers said personalized direct mail increased response, on average, by 16%.  

Data Quality Key to Privacy, Personalization, New Tech Initiatives

Data quality will be even more key to data strategy in 2020. It is paramount in meeting consumer data privacy regulations, for example, where validated contact data is required to avoid consequences ranging from compliance penalties to brand damage. Effective omnichannel, targeted marketing also requires data quality. A Forrester Consulting July 2019 report revealed that while 82% of companies place a high priority on refining data quality, more than a quarter of all marketing campaigns were hurt by substandard data in the last 12 months. Plus, the high-tech analytics and artificial intelligence (AI)/machine learning (ML) that marketers count on to boost personalized customer interaction also depend on data quality. A majority of enterprises engaged in AI/ML initiatives (78%) say these projects have stalled—with data quality as one of the culprits for 96%—according to a new study from Dimensional Research. That’s why CMO Kristin Hambelton, of Marketing Evolution, urges marketers in a recent Forbes magazine post to take these basic steps for improved 2020 data quality: 1) prioritize data quality and create a comprehensive initiative that includes not only processes and technology but defined positions responsible for data verification, collection and cleansing policies; 2) define and verify high-quality data in terms timeliness, completeness, consistency, relevance, transparency, accuracy, and representativeness; 3) organize disparate data sources with unified marketing measurement, breaking down silos to develop a holistic customer view across sources and channels, and to form actionable insights. 

 

 

Leverage 2020 Trends With Direct Mail Push

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For direct marketers hesitating over direct mail campaign investments, 2020 is the year to strike while the iron is hot—with a good economy, high response rates and flat costs. That’s especially true because the 2021 road may be a bit bumpier.

Economy, Response and Costs Give 2020 Mail Green Signals

The U.S. consumer is confident, the economy is projected to continue growing in 2020, and mailing cost inflation is minimal. Per the December 2019 Federal Open Market Committee, U.S. GDP growth is forecast to average 2%, lower than 2019’s 2.2% but far from recession. Meanwhile, consumer buying power should remain strong with an average unemployment rate of 3.5% in 2020 and a core inflation rate (stripping out volatile fuel and food prices) projected to average just 1.9% in 2020, while the Federal Reserve’s eased interest rates continue to buoy growth. So it’s no surprise that consumers are entering 2020 with positive outlooks: The University of Michigan’s consumer sentiment for the U.S. was 99.3 for December of 2019, the highest reading since May of last year. And direct mail offers unique advantages for reaching those consumers, starting with high response rates. The last ANA/DMA data pegged average direct mail response at historic highs of 4.9% for prospect lists and 9% for house lists, way ahead of the 1% response rates of e-mail, social media and paid search. Meanwhile, low projected increases in key costs are clearing the way for ROI on mail investment as well.  For example, 2020 coated paper prices are projected to be held down by reduced demand, caused by a continued growth of electronic media use by advertising and publication printing, coupled with oversupply from new production capacity, especially in Asia. A strong U.S. dollar adds to downward price pressure. Meanwhile, postal rates for marketing mail in 2020 are expected to remain close to the average as enhanced carrier route letters go up less than average, with five-digit automation letter rates, entered at the SCF, projected to increase by 2.2%, and the high-density walk sequence carrier route letter rate, entered at the SCF, increasing only 1.1%.

After 2020, Mail Faces Rougher Economic Seas

Those who fail to take advantage of 2020’s positive direct-mail climate may soon regret the missed opportunity if costs rise and the aging economic growth cycle slips into recession. Potential postal rate increases are an especially dark cloud. In December, the Postal Rate Commission (PRC) proposed new rules for USPS rate-making that, if implemented for all classes of mail would increase rates by a massive 30%-50% over the following five years. Mailers and their organizations will want to join The Nonprofit Alliance and the Alliance of Nonprofit Mailers in fighting such huge increases. At the same time, the economy, even if it stays out of recession, is projected to slow. The Federal Open Market Committee forecasts U.S. GDP growth to slow to 1.9% in 2021 and 1.8% in 2022, as a side effect of trade-war drags. Meanwhile, new data security and privacy legislation could pose significant challenges for data-driven marketing.

Data-Driven Efforts Face Privacy Legislation Challenges

The shift to more targeted, personalized and timely direct-mail campaigns is one reason that direct mail continues to turn in high responses at acceptable ROI. But using digital print technology, coupled with audience selection and segmentation, to personalize and target every component of a mail piece relies on data, and privacy laws are coming in to regulate the previously wide-open data market. Of course, there is the GDPR (EU General Data Protection Regulation), but most marketers are going to be more affected by new U.S. state and federal privacy law pushes. For example, California’s CCPA (California Consumer Privacy Act) went into effect January 1 of this year. It applies to for-profit businesses operating in California and collecting personal data if they have annual gross revenues over $25 million; annually buy, receive, sell, or share personal information of over 50,000 California consumers, households, or devices; and derive at least 50% of annual revenue from selling California consumers’ personal information. The regulation offers consumers the right to access information (including categories of data collected, shared or sold; categories of sources from which this personal information was collected, with whom it was shared, and to whom it was sold; specific pieces of personal information collected; and why the personal information was collected). Consumers also gain a right to deletion (the ability to request that a company delete personal information collected) and a right to opt out (the ability to direct a company to not sell personal information to third parties). Now The Nonprofit Alliance is alerting mailers that new data privacy and financial disclosure bills are in the offing. California, for one, isn’t done legislating in this area, and other states (such as Virginia) are following in California’s footsteps. Plus, the Senate is continuing an effort to draft a bipartisan national privacy statute led by the “Gang of Six”—Republicans Roger Wicker (MS), John Thune (SD), and Jerry Moran (KS); and Democrats Maria Cantwell (WA), Richard Blumenthal (CT), and Brian Schatz (HI)—and most Republican Senators appear to support legislation which would preempt state privacy statutes with a uniform national standard. For marketers, the hope must be that a national “rules of the road” for data privacy will be less onerous than a patchwork of state laws.

All these potential challenges ahead are making 2020 look like a good year to profit from direct mail and targeted lists! For more inspiring direct mail statistics, see this compilation from mail automation provider Inkit.

 

Weaponize B2B Data for 2019 With These Tactics

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Targeted, clean data is a key deliverable of AccuList USA’s data services and list brokerage efforts for business-to-business marketing clients. And as those clients prepare their 2019 plans, we urge them to take basic steps to ready their data-driven marketing for maximum performance. A Martech Today post by Scott Vaughn sets the stage by recommending five essential data-oriented strategies for B2B.

Precisely Defined Audience Targets Using Clean Data

Good response and conversion depend on identifying and engaging the right audiences, meaning the right companies and the right decision-makers within those companies, Vaughn reminds. To target that right audience requires processes for capturing critical data about prospects, customers and their purchase journey with precision, he asserts, and recommends a strategy of starting with a smaller universe of accounts and roles to more precisely define best targets–and then testing and using advanced strategies, such as predictive marketing and intent-data modeling, to expand to more accounts and buyers. But that kind of data targeting only works if marketers are looking at quality data, so data hygiene is another necessity. When a recent DemandGen survey finds that more than 35% of the data in existing databases is unmarketable on average, avoiding wasted dollars means instituting a “get clean, stay clean” data-hygiene effort for 2019, Vaughn urges. The hygiene regimen should include regularly auditing of data-capture processes and sources, using filters before data can enter the database, and maintaining a cleansing process to eliminate records that are invalid, non-standardized, duplicate or non-compliant.

Permission-Based Trust and Speedy Follow-up

Because today’s buyers are leery of companies and brands that don’t treat their information with care and because stringent data-privacy laws are being deployed around the globe, B2B marketers must have a proactive permission-based marketing plan for their data, warns Vaughn That includes asking for opt-in everywhere and having very visible, clear explanations of how behavioral data, such as website cookies, is used. Meanwhile, prospects and customers have not only come to expect data privacy, they have become used to the rapid, real-time response of the digital market. Yet for many B2B campaigns, it takes two or three days to follow up on a lead or inquiry, or even seven or eight days just to get leads loaded into marketing automation or CRM software! Vaughn proposes a concerted effort to speed data handling by identifying areas where data can be routed faster and reaction time reduced and then initiating sales and marketing training on speedier handling at each stage of the customer journey. That’s why many executive teams now prioritize a measure of “pipeline velocity,” meaning the time from when an opportunity is created to when the deal is closed, to improve revenues.

Agreeing on Measurements That Matter

Accurate, targeted, speedy data processes don’t automatically result in ROI improvement, however–not if data analysis ends up focused on the wrong metrics. Vaughn reports that high-performing marketing teams use insights with these key ingredients: agreed-upon key performance indicators (KPIs); tools that can measure performance; and easy-to-use dashboards that can help all stakeholders (marketing, sales, execs, etc.) make smarter decisions. For his complete article, see https://martechtoday.com/5-essential-strategies-b2b-marketers-must-master-in-2019-228066

U.S. Marketers in Europe Wrestle GDPR Data Compliance

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AccuList USA supplies data and direct marketing services to organizations with international as well as domestic reach. Starting this May, any U.S. marketer targeting actual or potential customers in the European Union (EU) countries must navigate a changed data landscape thanks to the new General Data Protection Regulation (GDPR). It doesn’t matter if the brand, marketer or data processor is based in the U.S.; strict compliance is mandatory. And shrugging off new data rules is a very costly mistake. Noncompliance can mean a fine equal to 4% of global annual revenue!

GDPR Seeks to Protect Personal Data

The intended purpose of the regulation is protection of non-anonymized personal data, and compliance is required of any company (or organization) that stores or processes that personal information about individuals (“data subjects”), who are defined as European citizens residing in an EU state. The protected personal data includes:

  • Name, address, and phone number
  • IP address and cookies
  • Racial identity
  • Religion and religious affiliation
  • Health and genetic data
  • Biometric data
  • Sexual orientation and gender preference
Individuals Have New Data Rights

GDPR’s regulated “data controllers,” who determine data processing, or “data processors,” who handle data on behalf of data controllers, must respect key rights with regard to personal information. For example, there is an individual’s right to access, to knowing what personal data has been collected and how that data has been processed. There is a right to accuracy, and restriction of data processing in the case of inaccuracy. There is a right to “freely given” and “explicit” consent for processing and storage of personal data. Plus, consent may not be regarded as “freely given” where performance of a contract is made conditional on consent, or is unnecessary to performance of a contract. The data subject also has the right to data portability, meaning the ability to request and receive personal data in a format easily transferred to another data controller. Finally, there is erasure or “a right to be forgotten,” which allows individuals to withdraw their consent for data use or storage and demand that personal data be erased and no longer processed. Not sure it applies to you, direct marketer? Consider this GDPR wording: “Where personal data are processed for the purposes of direct marketing, the data subject should have the right to object to such processing, including profiling to the extent that it is related to such direct marketing, whether with regard to initial or further processing, at any time and free of charge.”

How Are U.S. Brands Handling GDPR?

Obviously, GDPR has big impacts on business strategies in the European market. For one thing, if you are handling personal data on a large scale or processing particularly sensitive data (such as health, race and religion), GDPR may require you to designate a specialized Data Protection Officer (DPO) to report to senior management. In terms of strategic response to the regulation, 64% of executives at U.S. corporations reported that their top strategy for reducing GDPR exposure is centralization of data centers in Europe, according to a report released by PricewaterhouseCoopers (PwC). Just over half (54%) told PwC they plan to anonymize European personal data to reduce exposure. A significant minority are even cutting European market efforts, with 32% of respondents planning to reduce their presence in Europe, and 26% intending to completely exit the EU market.

For a definitive guide to GDPR and explanations of key terms, see this Direct Marketing News article.